Aeon Jusco Case Study

Background of the AEON

Customers prefer to shop at ÆON because they believe there is no better source for their daily necessities that so thoroughly addresses very real concerns for product reliability and food safety. AEON JUSCO is the largest retailer in Japan. Through ownership and investments, AEON controls approximately 4,000 stores worldwide. The founder of AEON JUSCO is Mr. Takuya Okada.The Company was established in September 1926 in three companies that are Futagi, Okadaya, and Shiro. The group was becoming increasingly eager to raise its image of a socially responsible "corporate citizen" on a global level in lately 1980. In 1983, Dr. Mahathir visited Tokyo and met Mr. Takuya Okada to discuss the proposition of bringing the JUSCO

The three main competitors in Malaysia which are Tesco, The Store, and Giant. First, Tesco is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second largest measured by profits. It has 14 countries across Asia, Europe and North America and is the grocery market leader in the UK. After joining the eighties trend for large out-of-town supermarkets, in the 1990s the company started pioneering many new innovations. It developed new store concepts such as Tesco Metro, a city center store meeting the needs of local shoppers, and Tesco Express, the first UK petrol station convenience store. Tesco introduced a loyalty card, branded 'Clubcard', in 1995 and later an internet shopping service. After two years, Tesco joint venture with the Royal Bank of Scotland to offer a range of financial services. The start of Tesco.com which was built on the back of existing stores and, with low capital spend, was profitable from the start – a key internal requirement. Tesco’s international operation, which started in 1994, has steadily expanded and now accounts for half of its total retail space. Second, The Store Group was established in year 1968. It is also recognized as the largest and oldest existing supermarket and departmental chain by The Malaysia Book of Records since year 2001, with 75 operating outlets spanning approximately 1 million square meters of retail space across Malaysia. The Store offered comprises fresh produce, various types of food and beverage, electrical appliances, apparels, footwear, bags, household items, baby and children’s products, cosmetics and etc. In a span of 47 years, The Store Group has grown in stature and has become the leading retailer in the country. The Store Corporation Berhad was listed on Bursa Malaysia on March 3, 1994. The Store is also the only local supermarket which